Regional economic integration, natural resources and foreign direct investment in SADC
Purpose – This paper aims to examine the role of economic integration and natural resources and foreign direct investment (FDI) complementarity in explaining economic growth in the Southern African Development Community (SADC). Design/methodology/approach – The study employed the ordinary least squa...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2021-07-01
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| Series: | Journal of Economics and Development |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JED-02-2021-0021/full/pdf?title=regional-economic-integration-natural-resources-and-foreign-direct-investment-in-sadc |
| _version_ | 1798036040541274112 |
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| author | Gameli Adika |
| author_facet | Gameli Adika |
| author_sort | Gameli Adika |
| collection | DOAJ |
| description | Purpose – This paper aims to examine the role of economic integration and natural resources and foreign direct investment (FDI) complementarity in explaining economic growth in the Southern African Development Community (SADC). Design/methodology/approach – The study employed the ordinary least square-random effects and the generalized two-stage least square instrumental variables (IV) regression to examine the relationship between the variables. Findings – The authors find that regional economic integration and natural resource abundance are essential for promoting economic growth. The results further show a potential resource curse phenomenon, offset by the complementary effect of FDI in resource-rich countries. The findings are robust after conditioning for different measures of institutional quality. Practical implications – The findings suggest the need for deeper regional trade integration and international cooperation, prudent natural resource management and concerted effort toward economic diversification. Originality/value – Many studies have examined the determinants of economic growth in the Southern African Development Community (SADC). However, these studies did not incorporate or assess the potential of economic integration in the region. Moreover, studies that examined the growth effects of FDI did not assess the complementary role of the region's natural resource endowment which potentially drives FDI inflows. This study fills these gaps and provides a robust analysis of economic growth drivers in the region. |
| first_indexed | 2024-04-11T21:06:51Z |
| format | Article |
| id | doaj.art-4cdce97d0f4144268b6003074e0feeda |
| institution | Directory Open Access Journal |
| issn | 1859-0020 2632-5330 |
| language | English |
| last_indexed | 2024-04-11T21:06:51Z |
| publishDate | 2021-07-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Economics and Development |
| spelling | doaj.art-4cdce97d0f4144268b6003074e0feeda2022-12-22T04:03:14ZengEmerald PublishingJournal of Economics and Development1859-00202632-53302021-07-01241334610.1108/JED-02-2021-0021669917Regional economic integration, natural resources and foreign direct investment in SADCGameli Adika0Department of Economics, University of Botswana, Gaborone, BotswanaPurpose – This paper aims to examine the role of economic integration and natural resources and foreign direct investment (FDI) complementarity in explaining economic growth in the Southern African Development Community (SADC). Design/methodology/approach – The study employed the ordinary least square-random effects and the generalized two-stage least square instrumental variables (IV) regression to examine the relationship between the variables. Findings – The authors find that regional economic integration and natural resource abundance are essential for promoting economic growth. The results further show a potential resource curse phenomenon, offset by the complementary effect of FDI in resource-rich countries. The findings are robust after conditioning for different measures of institutional quality. Practical implications – The findings suggest the need for deeper regional trade integration and international cooperation, prudent natural resource management and concerted effort toward economic diversification. Originality/value – Many studies have examined the determinants of economic growth in the Southern African Development Community (SADC). However, these studies did not incorporate or assess the potential of economic integration in the region. Moreover, studies that examined the growth effects of FDI did not assess the complementary role of the region's natural resource endowment which potentially drives FDI inflows. This study fills these gaps and provides a robust analysis of economic growth drivers in the region.https://www.emerald.com/insight/content/doi/10.1108/JED-02-2021-0021/full/pdf?title=regional-economic-integration-natural-resources-and-foreign-direct-investment-in-sadcregional integrationnatural resourcesforeign direct investmenteconomic growthsadc |
| spellingShingle | Gameli Adika Regional economic integration, natural resources and foreign direct investment in SADC Journal of Economics and Development regional integration natural resources foreign direct investment economic growth sadc |
| title | Regional economic integration, natural resources and foreign direct investment in SADC |
| title_full | Regional economic integration, natural resources and foreign direct investment in SADC |
| title_fullStr | Regional economic integration, natural resources and foreign direct investment in SADC |
| title_full_unstemmed | Regional economic integration, natural resources and foreign direct investment in SADC |
| title_short | Regional economic integration, natural resources and foreign direct investment in SADC |
| title_sort | regional economic integration natural resources and foreign direct investment in sadc |
| topic | regional integration natural resources foreign direct investment economic growth sadc |
| url | https://www.emerald.com/insight/content/doi/10.1108/JED-02-2021-0021/full/pdf?title=regional-economic-integration-natural-resources-and-foreign-direct-investment-in-sadc |
| work_keys_str_mv | AT gameliadika regionaleconomicintegrationnaturalresourcesandforeigndirectinvestmentinsadc |